Analysts at JPMorgan have said in a note to investors dated September 22 that Ethereum futures available for trading on CME are trading at a premium due to the flow of funds from institutional investors in similar Bitcoin-based instruments, Cointelegraph has reported.
According to them, Bitcoin futures, after suffering a correction in September, are trading at a discount to their spot price. It is worth noting that typically, when demand is high, BTC futures tend to trade at a premium over spot markets due to BTC's high storage costs and attractive passive investment returns in cryptocurrencies.
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According to CME data, the 21-day average premium of ETH futures rose to 1% over Ether prices in the spot markets. The bank's analysts added:
"This points to much healthier demand for Ethereum vs. Bitcoin by institutional investors."
In September, JPMorgan strategist Nikolaos Panigirtzoglu, based on network activity indicators, determined Ethereum's fair price at $1,500.
In July, Goldman Sachs analysts admitted the second largest crypto by market cap will overtake Bitcoin as a store of value.
In May, the bank's specialists recognized cryptos as an asset class, and a month later expressed the opposite opinion.